Rise of Chinese Multinational Firms

Since 2003, China has been one of the most significant sources of outward foreign direct investment (FDI) in the world. How did this happen? What are the features of Chinese outward direct investment (ODI)? Are they different from developed-country FDI? Why do Chinese firms go multinational? What competitive advantages do Chinese firms have in going multinational? The Chinese ODI boom is a result of China's rapid economic growth and its "going-global" strategy. Chinese multinational firms are similar to those in developed countries in many respects, but differ largely in ownership structure. Their competitive advantages are derived mainly from China's institutional organization and efficient management in the production process. Four motivations of Chinese ODI are: to maintain and expand international markets, to secure a supply of key resources, to obtain firm assets from advanced economies, and to seek overseas opportunities with an international vision.